The Strategy Research Of Rural Circulating Funds And Investment In China

At first,the article analyses the important role in which the agricultural circulating funds play in the new era of agricultural development in China. On the point of key element input, investment affects economy improvement in two parts: 1, investment demand pulls economy(Keynes investment multiplier theory) ;2,investment supply push the economy investment(Harrod—Domar model). Agricultural investment substitute for agricultural key factors in a certain degrees. The circulating funds of agricultural investment include good seed,chemical fertilizer,farm chemical and so on which can increase land productivity rate and increase agricultural output. It can diminish the scarity of natural resourse such as land. The ways of agricultural improvement change relays on development of technology ,yet the development of technology replys on agricultural investment, agricultural technology foundation reseach,using research and technology spreadment need large number of investments. Agricultural investment can use technology potencial to accelerate technology investment on aspect of pushing technology. Second,article analyses main parts of rural investment, government, financial institute and agricultural comparative investment rate. Agricultural comparative investment rate is the rate of agriculture fixed capital investment/total social fixed investment to the ratio of agricultural product/GNP. For instance, we calculate the agriculture comparative investment rate of Jilin province. In fact,there is a large gap between agricultural product and the quantity of agricultural capital investment and there is a downward trend of comparative investment rate . The minimum is 0.16 in 1993, which reflects the the extreamal lack of agriculture investment. Third,article makes asystematic research in the problem and current situation of agricultural investment in chain. It suggests that the...